Senate Engrossed House Bill

 

 

 

State of Arizona

House of Representatives

Fifty-third Legislature

First Regular Session

2017

 

 

HOUSE BILL 2152

 

 

 

AN ACT

 

amending section 49-410, Arizona Revised Statutes; relating to air quality.

 

 

(TEXT OF BILL BEGINS ON NEXT PAGE)

 


Be it enacted by the Legislature of the State of Arizona:

Section 1.  Section 49-410, Arizona Revised Statutes, is amended to read:

START_STATUTE49-410.  Voluntary Arizona emissions bank; definitions

A.  The department of environmental quality shall establish and administer an a voluntary Arizona emissions bank for registering the deposit, transfer and use of emission reduction credits.  The department shall make information on emission reduction credits deposited in the voluntary Arizona emissions bank easily accessible to the Arizona commerce authority and to the public.

B.  After the effective date of rules adopted pursuant to subsection D of this section, a permitted source that reduces emissions of particulate matter, sulfur dioxide, carbon monoxide, nitrogen dioxide, or volatile organic compounds by an amount greater than that required by applicable law, rule, permit or order shall be granted credit in an amount to be determined by the department of environmental quality.  The credit shall be deposited into the Arizona emissions bank.  This state, any political subdivision of this state and any person that reduces qualifying emissions may apply to the department to certify emission reduction credits to be deposited into the voluntary Arizona emissions bank.  To be creditable eligible for certification and deposit in the voluntary Arizona emissions bank, the reduction in qualifying emissions shall be permanent, quantifiable, surplus, real and otherwise enforceable and shall occur after August 6, 1999.  This section does not prohibit a source an activity from receiving credit by means other than the voluntary Arizona emissions bank for emissions reductions that occurred before August 6, 1999.

C.  The department of environmental quality shall register, certify or otherwise approve the amount of the credit act on an application submitted under subsection B of this section and certify the amount of the emission reduction credits under rules adopted pursuant to subsection D of this section before the credit is banked credits may be deposited and used to offset future increases in the emissions of air pollutants.  The credit may be used, traded, sold or otherwise expended within the same nonattainment area, maintenance area or modeling domain in which the emissions reduction occurred, only if there will be no adverse impact on air quality.  Pursuant to title 41, chapter 6, article 8, the department may delegate certification of emissions emission reduction credits to a county or multi‑county air quality control region, but shall retain authority to register the deposit, transfer and use of emission reduction credits and administer the voluntary Arizona emissions bank.

D.  On or before January 1, 2002, The department of environmental quality shall adopt rules for the implementation and administration of the voluntary Arizona emissions bank, and establish the criteria the department will use to determine the eligibility of reductions in qualifying emissions for emission reduction credits and the amount of the emissions credit credits.  except to the extent otherwise required by the Clean Air Act, the rules shall provide for the award of emission reduction credits equal to the full amount of reductions in qualifying emissions that are permanent, quantifiable, surplus, real and otherwise enforceable.  The department shall establish by rule a fee system to administer cover the reasonable costs of administering the voluntary Arizona emissions bank.  A county that has been delegated authority to certify emissions emission reduction credits pursuant to subsection C of this section shall may establish a fee system to cover the reasonable costs of certification in accordance with section 49‑112, subsection B.  In setting the fee, the director and a county shall consider the likely economic value of the credits and shall set a fee that does not discourage the banking of emissions credit.  In adopting rules pursuant to this subsection, the department and a county shall consider and make reasonable attempts to mitigate any adverse impact on the commercial trucking industry, including any adverse economic impact and any impact on driver safety.

E.  The program established by this section ends on July 1, 2019. Except to the extent otherwise required by the Clean Air Act, until used or voluntarily retired by the owner, emission reduction credits deposited in the bank:

1.  DO not expire.

2.  Shall be identified and accounted for in the state implementation plan control strategy for the area in which the reduction in emissions occurred.

3.  May not be reduced or withdrawn without permission of the owner.

F.  Notwithstanding any other law, this section does not directly or indirectly authorize this state or any political subdivision of this state to establish new or more stringent emissions regulations than provided in existing law for stationary or mobile sources.

G.  A fleet owner that applies for emission reduction credits pursuant to this subsection shall specify the composition of its proposed participating fleet.

H.  For the purposes of this section, unless the context otherwise requires:

1.  "Emission reduction credit" means a reduction in qualifying emissions that has been certified for potential use as an offsetting emission reduction in a permit issued under this chapter, including a permit required by section 173 of the Clean Air Act.

2.  "Qualifying Emissions" means emissions of any conventional air pollutant, other than elemental lead, or any precursor of a conventional air pollutant from any activity.  Qualifying emissions does not include emissions from a fleet of motor vehicles if the fleet operates outside of a nonattainment area. END_STATUTE